DUFF & PHELPS: MISSISSIPPI POWER & LIGHT COMPANY $82.5 MILLION GENERAL AND REFUNDING MORTGAGE BONDS RATED 'BBB'
CHICAGO, July 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB' (Triple-B) to Mississippi Power & Light Company's issuance of $82.5 million of general and refunding mortgage bonds. Proceeds will be used primarily for refunding of debt. The bonds will be secured by a second mortgage lien on virtually all properties. Although the bonds are junior and subordinate to the first mortgage bonds, they carry the same Duff & Phelps credit rating (`BBB'). No additional issuances of first mortgage bonds are permitted under the first mortgage. Additionally, the first mortgage bonds will constitute a minority of the secured debt after all planned general and refunding mortgage bond issuances. Mississippi Power & Light has demonstrated improvement in credit fundamentals. Despite sub-par demographics within its service territory, financial measures are anticipated to remain relatively stable due to lower interest expense and strong cash flow. Recovery of deferred Grand Gulf 1 purchased power costs, which began in 1991, will contribute to gradually improving internal cash generation. Cash coverages are expected to stabilize in 1998 after the Grand Gulf 1 deferrals are fully recovered. No new baseload generation is forecasted through 2000. With its manageable construction program and cost cutting measures, the company does not anticipate filing for rate relief in the foreseeable future. The Federal Energy Regulatory Commission's authorization for Mississippi Power & Light to sell wholesale power at market based rates and to provide for open-access to other electric utilities will provide increased marketing opportunities for Mississippi Power & Light and the entire Entergy system. However, this also exposes the company and the system to the risk of load or revenue loss due to competition with alternative suppliers. Mississippi Power & Light Company, a subsidiary of Entergy Corporation, provides electric service in the western Mississippi region. -0- 7/21/93 /CONTACT: James J. Stork of Duff & Phelps Credit Rating Co., 312-368-3125/
CO: Mississippi Power & Light Company ST: Mississippi IN: UTI SU: RTG
LD -- NY094 -- 4138 07/21/93 16:31 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 21, 1993|
|Previous Article:||PRAXAIR COMPLETES SUCCESSFUL TENDER OFFER FOR ARGON S.A. SHARES|
|Next Article:||DUFF & PHELPS: MATAGORDA COUNTY NAVIGATION DISTRICT NUMBER ONE $120.265 MILLION POLLUTION CONTROL REVENUE REFUNDING BONDS SERIES 1993 RATED 'A-'|